Crown Textile, the Partnership Concern, was incorporated in Pakistan under the provisions of the Partnership Act, 1932, and registered with the Federal Board of Revenue on June 14, 2004, as an Association of Persons (AOP).

Crown Textile began as a very small business in 2000, and shipped its first export order in 2000. Crown’s Textile's first era was slow and steady growth. During this period, Crown Textile cultivated distinction in assembly line production and created the right systems for apparel manufacturing. The registered office of Crown Textile is situated at F-352/A Sindh Industrial Trading Estate, Karachi, Karachi City, Sindh.

Crown Textile is the manufacturer and exporter of Men's, Ladies and Children's knitted garments. Crown Textile produces over 12mln ready-made garments in 8MFY25 and operates with a capacity of 101 knitting machines, processing 40,000–45,000 kgs of knitted raw fabric and 50,000 kgs of dyed fabric per day.

Crown Textile is primarily owned by Mr. Muhammad Nadeem, who holds a 98% stake, while the remaining 2% is owned by his wife.

Crown Textile operates as an AOP, and no changes in its ownership structure are anticipated in the foreseeable future. However, over time, the establishment of a family constitution or the implementation of a formal succession plan will enhance stability in the ownership structure.

Mr. M. Nadeem has over three decades of experience in the textile industry, during which he has developed substantial expertise. He is considered the 'man of the last mile,' with the business acumen necessary to navigate and sustain future challenges effectively.

Apart from the textile business, the sponsoring family is also involved in real estate. They are committed to providing financial support if needed.

Crown Textile currently has no formal board due to its legal structure. However, establishing a formal board would enhance the governance framework, promoting stronger oversight and strategic decision-making.

Mr. Muhammad Nadeem holds a Bachelor's degree in Commerce. He served as the General Manager at M/S M.R. Industries from 1990 to 1995. From 1995 to 2000, he owned a subcontracting factory and worked with exporters. In January 2000, he established M/S Crown Textile as an AOP. 

Due to the absence of a formal board, the CEO exercises centralized control over all operational decisions, directly overseeing and managing activities.

Crown Textile has appointed a new auditor, SARWARS Chartered Accountants, which is listed on the State Bank of Pakistan (SBP) Panel of Auditors under category “C”. The former auditor, Ale Imran & Co. Chartered Accountants, is a QCR-rated firm but is not included in the SBP Panel. The change aligns with Crown Textile's efforts to enhance transparency. To enhance financial transparency and governance, Crown Textile may consider transitioning from an Association of Persons (AOP) to a Private Limited Company (Pvt. Ltd.). This shift would bring increased regulatory oversight, structured financial reporting, and a clearer ownership framework, ultimately improving credibility and access to financing.

The organizational structure of Crown Textile is divided into several functional departments, namely: (i) Finance & Commercial (F&C), (ii) Marketing, (iii) Technical, (iv) Production, (v) Information Technology, and (vi) HR, Admin and procurement functions. All departments report directly to the CEO.

Mr. Muhammad Kashif is the Chief Operating Officer (COO) and has been associated with Crown Textile for 24 years. Mr. Haseeb Munaf is the Vice President and has been with Crown Textile for four years.

The management meetings are held on periodic basis with follow-up points to resolve or pro-actively address operational issues, if any, eventually ensuring smooth flow of operations. These meetings are headed by the CEO.

Recognizing the need for quality information systems to control and maintain the efficiency of operations, Crown Textile has implemented an Oracle-based ERP solution – Oracle E business suite – version 6.1, (for Financial Reporting, Inventory, and Procurement from Head Office). The MIS reports are updated on a real-time basis to be available to the CEO all the time. The reports are shared and discussed with the CEO regularly to ensure timely decision-making and smooth flow of operations.

Crown Textile utilizes management systems as its mechanism for ensuring control. There is clear evidence of these systems being audited and certified externally. Examples of this include WRAP, BSCI, SLCP, C-TPAT, Higg FEM, OEKO TEX, GOTS – Global Organic Textile Standards, Made in Green – GRS & Better Cotton Index certifications. This both provides assurance and drives continual improvement.

The textile exports of the country reached USD 16.7bln in FY24, a slight increase from USD 16.5bln in the previous year, reflecting a growth of 0.93% YoY. The highest contribution came from the composite and garments segment at USD 9.1bln, followed by the weaving segment at USD 6.5bln and the spinning segment at USD 1.0bln. During 8MFY25, the textile exports stood at USD 12.2bln. Pakistan's exports to the USA were USD 4.02bln in FY24 and USD 2.83bln in 8MFY25. Recently, the USA imposed a 29.0% tariff on Pakistani exports. The subsequent impact on the broader dynamics of Pakistan's textile industry, as well as the adaptability of textile manufacturers, will be assessed in due course.

Crown Textile maintains a stable standalone position and is considered an emerging player in Pakistan’s knitted garments industry.

During FY24, Crown Textile achieved a topline of PKR 9.15bln (FY23:8.45bln; 6MFY25: PKR 7.0bln). Crown Textile is a 100.0% export oriented textile unit. The topline growth is driven by improvement in business volumes with adequate product price dynamics coupled with stability in the USD conversion rate. The prominent customers of Crown Textile include renowned fashion brands such as LPP S.A., Primark Limited, Nikol S.A. (Lefties), and the apparel manufacturer Lamour Global Inc. Exports constitute approximately 37% to the USA, with the remaining share directed to Europe. Crown Textile's approach to navigating the US market amid evolving trade conditions will be evaluated in the upcoming quarters.

Crown Textile has sustained its gross margins within a reasonable range over the last three years (FY24: 22.5%, FY23: 22.9%, FY22: 21.3%). During FY24, its net margins have shown gradual improvement, mainly due to the rationalization of the operating expenses-to-sales ratio. The net profit margin stood at 2.2% in FY24 (FY23: 1.5%).  The management has also implemented renewable energy initiatives over time, including the installation of a 2-megawatt solar power plant, with an additional 1-megawatt plant currently in progress. These efforts aim to optimize energy costs and create a cushion in the cost structure.

The Landhi Dyeing Facility has been fully commissioned and is now operational, marking a strategic milestone in achieving greater end-to-end control over the in-house textile production chain, particularly in terms of cost, quality, and product lead time. However, the remaining two projects—the Denim Factory and the Nooriabad Facility—are currently on hold. No major other CAPEX is anticipated in the near future. 

Crown Textile primarily finances its working capital needs through short-term borrowings, which declined to PKR 1,380 mln in 6MFY25 (FY24: PKR 1,450 mln, FY23: PKR 1,380 mln). In FY24, Crown Textile maintained inventory levels similar to the previous year while negotiating more flexible payment terms with creditors. This led to an increase in trade payable days, improving the net working capital cycle to 72 days in FY24 (FY23: 98 days). The current ratio stood at 1.6x, while short-term trade leverage was 7.9%, indicating adequate room for borrowing.

As of FY24, free cash flow from operations improved to PKR 723mln (FY23: PKR 537mln), reflecting an enhancement in the profitability matrix. This led to an improvement in both the EBITDA-to-Finance Cost ratio and the FCFO-to-Finance Cost ratio, which stood at 2.6x (FY23: 2.2x) and 2.2x (FY23: 1.9x), respectively.

Crown Textile's leverage decreased to 40.3% in FY24 (FY23: 50.4%) as PKR 579mln in short-term borrowings and PKR 237mln in long-term borrowings were repaid during the year. Consistent profitability over the years has strengthened the equity base to PKR 2,938 mln in FY24 (FY23: PKR 2,753 mln). As of FY24, short-term borrowings stood at PKR 1,450mln (FY23: PKR 2,029mln), accounting for approximately 54.9% of total borrowings. The debt funding base primarily consists of subsidized lending from the SBP, helping keep finance costs within a manageable range.